Ulster Bank seeks €3.95m judgment against businessman

Fund pursues businesswoman for €1.75m

Summary judgments are being sought against a businessman and and a businesswoman in the Commercial Court.

Summary judgments are being sought against a businessman and and a businesswoman in the Commercial Court.

 

A Dublin businessman is being pursued by Ulster Bank Ireland in the Commercial Court for judgment of €3.95 million.

In a separate unrelated case, a fund is seeking €1.75m judgment orders against a Dublin businesswoman who is also facing possession proceedings by it in the Circuit Court.

The first action, by Ulster Bank Ireland Designated Activity Company (UBI), against Patrick, otherwise Paddy Rafferty, Hyde Park, Terenure, was admitted to the fast-track court on Monday by Mr Justice Brian McGovern.

It arises from a €3.4 million loan facility advanced to the businessman in 2006 to buy a .25 acre site, Hazeldene, Corrig Road, Dun Laoghaire.

Arising from alleged failure to pay interest in line with the terms of the facility, UBI, through Capita Asset Services (Ireland) Ltd, demanded on June 16th 2017 that €3.93 million then allegedly due and owing be repaid within seven days.

When that was not paid, it appointed a receiver over certain assets of Mr Rafferty’s under a mortgage of May 31st, 2006 and over other assets held by Mr Rafferty and his wife Joan.

The assets include a detached house known as Hazeldene, Corrig Road, Dun Laoghaire, and an apartment complex, Springvale House, Edmonstown Road, Rathfarnham, both provided as security for all sums due by Mr Rafferty to UBI.

UBI says, while neither property has been sold and no surplus income has been received from them, any monies paid to it out of the receivership will go towards reducing the €3.95m sum it claims is due and owing by Mr Rafferty as of September 18th last.

Despite negotiations between Capita and Mr Rafferty, no agreement was reached regarding his outstanding obligations under the loan, UBI added.

The judge said he was satisfied to admit the case and returned it to February.

In the second case, also admitted to the fast-track court on Monday, a fund, Launceston Property Finance DAC is seeking judgment for some €1.76 million against Joanna Carney, a businesswoman with an address at Claremont Road, Sandymount, Dublin 4.

That case, also returned to February, arises from two loan facilities totalling some €1.6m granted by Anglo Irish Bank in 2009 which, it is alleged, had to be repaid in full by March 31st, 2010. The fund acquired the loan facilities in 2014 following the collapse of Anglo and the transfer of its assets and liabilities to State-owned Irish Bank Resolution Cirporation.

Launceston says both facilities were secured on Ms Carney’s interest in the Claremont road property, described as her principal residence.

While Ms Carney and/or her financial advisor had made proposals to restructure that, the fund says, because of the scale of the liabilities, and the nature of the proposals advanced, it has not proven possible to agree an alternative arrangement.

Ms Carney, aged in her early fifties, has been making monthly repayments of some €2,500 for some time but, even if she continues those indefinitely, and no further interest is charged, it would take 60 years to clear the debt, the fund said.

Because Ms Carney remains in occupation of the property, the fund said it has been unable to get a valuation of it but it does not believe the sale proceeds would be adequate to discharge the full debt.

It is apparent Ms Carney also intends to oppose possession proceedings initiated by the fund last month in the Circuit Court but unlikely to be determined before 2019, it added.

In all the circumstances, it was seeking summary judgment.